Our View: State ignored warnings and problems grew

If lawmakers would have listened to Illinois Comptroller Dan Hynes 11 years ago, Illinois might not be in the fiscal mess it is in today.

Journal Standard

Writer

Posted May. 6, 2013 at 12:01 AM
Updated May 6, 2013 at 5:22 AM

Posted May. 6, 2013 at 12:01 AM
Updated May 6, 2013 at 5:22 AM

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If lawmakers would have listened to Illinois Comptroller Dan Hynes 11 years ago, Illinois might not be in the fiscal mess it is in today.

In 2002, the state’s bill backlog was “only” $1.2 billion in bills due and people doing business with the state “only” had to wait a month to get paid.

That seems like heaven compared to today’s six-month-plus wait and a $5.6 billion backlog. The backlog could be close to $9 billion by the time the fiscal year ends June 30.

It’s sad to think that Gov. Pat Quinn’s proposed budget would cut the backlog to $6.7 billion and that would be considered a victory.

We endorsed Hynes in the Democratic primary for governor in 2010 because he was a consistent voice of fiscal reason in his three terms as comptroller. He knew Illinois needed to cut spending and raise revenue. He proposed a graduated income tax, an idea that’s being considered again. We didn’t see a lot of support for it then, and we don’t see it three years later, either.

Of course, if Illinois officials had practiced fiscal discipline a decade ago, when Hynes first sounded the alarm, the tax discussion might be moot today.

Meanwhile the Deadbeat Illinois series continues to point out the effects on the residents of Illinois of the state’s inability to pay its bills.

La Voz Latina served more than 6,700 area residents in 2012. It’s funding has been cut and the state is months behind in paying what is owed. The result: La Voz has had to lay off workers, cut pay and reduce office hours.

It’s a scenario that has been played out in just about every agency that does business with Illinois. The ripple effect of adding people to the unemployment roles makes a bad situation worse. Illinois’s unemployment rate is the second worst in the country, trailing only Nevada.

Pension reform is considered crucial to getting Illinois finances back on track. Pension costs continue to grow and consume more and more of the state’s budget every year.

Much of the blame can be placed on former governor and current prison inmate Rod Blagojevich. He expanded programs beyond the state’s ability to pay for them and the pension “holidays,” i.e. skipped payments, under his watch have exacerbated the pension problem.

Also, borrowing under Blagojevich will cost the state billions in interest before the loans are paid off.

Page 2 of 2 - Even as he sits in a cell in a low-security prison 15 miles southwest of Denver, he continues to embarrass Illinois.

The Securities and Exchange Commission hit the state with fraud charges in March because Illinois misled investors about the true risk of its pension obligations between 2005 and 2009.

The Blagojevich administration did not disclose the impact of the skipped pension payments, the SEC said.

In 2005, Blagojevich said pensions were a catastrophe waiting to happen and he would “fight like hell” to ensure pension reform. The “catastrophe” at the time was an unfunded liability of $35 billion. Today it’s just shy of $97 billion. Instead of fighting like hell, the former governor let the state’s finances go to hell.

Pension reform legislation passed the House last week, but the differences between the House bill and a Senate version need to be resolved.